Lodha wins Birla Corp poll by huge margin

Birla Corporation's first annual general meeting (AGM) after the demise of chairperson Priyamvada Birla and the clash of wills between the Birla family and group co-chairman RS Lodha, could go down in corporate history for more reasons than one.

The marathon AGM, attended by 600 shareholders, lasted the entire day and was filled with histrionics and the occasional scuffle.

Resolutions proposed by Lodha were carried with more than 99 per cent votes in favour. SK Parekh, a Birla group director and a shareholder of Birla Corporation, led by protests from minority shareholders.

Polling was held on all resolutions, including the vacancy caused by the demise of Priyamvada Birla and the appointment of KK Birla's daughter, Nandini Nopany. She was not present.

To the surprise of all present, Lodha chaired the meeting, that too after a two-hour tussle on the issue.

At the start, shareholders of Birla Corporation unanimously elected Dharmendra Bhandari, the UTI nominee, as the provisional chairman by a show of hands.

However, the minority shareholders were caught completely off-guard when Bhandari proposed that Lodha, the co-chairman and director of Birla Corporation, be elected to chair the meeting.

A poll was conducted and the entire process lasted two hours, with minority shareholders agitating against Lodha. The agitation was led by Parikh, who's also the director and company secretary of Kesoram Industries, a BK Birla group company. He wore the hat of a minority equity shareholder at the AGM.

Out of the total votes of 5.22 crore shares, only 0.000105 per cent votes were cast against Lodha.

Even the mourning for Priyamvada Birla went into two rounds "" one by shareholders opposing Lodha and one official proposed by Lodha.

There was some confusion among the shareholders about the order issued by the Company Law Board (CLB) yesterday and whether Lodha could chair the meeting.

The company had obtained a clarificatory order from the CLB this morning, which stated that the direction regarding chairmanship was restricted to the business regarding items 6,7 and 8 which pertained to the reappointment of Lodha, Pracheta Majumder and Vikram Swarup.

Lodha, who spoke at a public forum for the first time after the spat came out in the open, was calm. When he responded to shareholders, there was silence at the auditorium.

In his speech, Lodha said that the bequest was not surprising. Without making any direct reference, he said there was continuity at Birla Corporation.

He added, "Some people may have claimed that they were not aware this was coming but, you should know better."

Lodha also advised the shareholders, "Don't be swayed by choppy waters. We will have to take the company forward." He clarified that the cost of litigation was not being debited to Birla Corporation.

Taking the cause of Priyamvada Birla forward, he announced the second phase of the MP Birla Eyecare clinic, which would be funded through charitable trusts and marginally by Birla Corporation.

Birla Corporation's goal was to be competitive and this would mean a relook at unviable businesses.

Shareholders put all the resolutions to vote, including the resolution seeking to keep the position of Priyamvada Birla vacant. Resolution seeking the reappointment Nandini Nopany, which was proposed by Lodha, was also put to vote.

Out of the total votes, for six resolutions, 99.99 per cent votes were cast in favour. The results of resolutions on the appointments of Lodha, Majumder and Swarup would be known once the CLB application was disposed.